quicky cranker wednesday, page-127

XJO (ASX200) -0.9%
XTL (Twenty Leaders) -0.9%
XFL (Fifty Leaders) -0.8%
XFJ (Financials) -1%
XMJ (Materials) -0.9%
Energy -2%
XSO (Small Ordinaries) -1.2%

Comment: Not too nice for the bulls today, but, so far, not much damage done. Volume was up a little on the previous two days. Not good. All the major indices (Financials, Materials and Energy) were down with the worst of them, Energy. Small Ords was a little worse than the XJO -1.2% versus -0.9%. Advance/Decline Ratio, however, was relatively benign at 0.88 – but still below 1.

It looks like the Australian market took its cue today from the last half-hour sell-off in the American market (mentioned this morning) and may be pre-empting further falls in America.

(Volume was still only about equal to the 10-Day Average and about 80% of the 50-Day Average. Still not all that concerning – but it is starting to rise as the market falls.)

INDICATORS:
RSI.9: 48.4. Below the mid-line. Negative.
MACD Histogram. Marginally below zero. Neutral
MACD . Marginally above zero – and flatlining. Neutral.
Stochastic: 49.9. Below its signal line and falling. Negative.
CCI.14: -15.4. Falling. Negative.

The technical picture worsened a little. Another down day, especially on a little higher volume, and this could get ugly.

The market is still well above critical support at 4140.

The chart has formed a symmetrical triangle – these normally break in the direction of the trend – which is up. If it does break lower, there’s still plenty of support below.

The main body of today’s candle was a bit bigger than the previous day’s, and that turn was a bit bigger than the day before that. So momentum is starting to increase to the down side. The market is also stalling below the 120-Day MA – another bearish sign. I’d like to see the market clear that decisively with a pick up in volume.

Caution.

Good luck
Redbacka